Urban Homebuyers See a Silver Lining?

There was a great story over at NPR this week about consumers who work in major cities flocking back to urban areas to take advantage of shorter commutes (and, thus, less gas consumption — something becoming more and more of a factor), closer amenities such as shopping and cultural attractions and more time-efficient living (imagine — no more mowing that acre of grass every week!).

Urban homebuilders must be delighted to see their average home’s selling price staying stable, if not rising (the NPR story mentioned median home prices in the city actually increasing 3.5% compared to a year ago). It would seem the allure of home “bigger and better” on the outskirts of metropolitan areas have lost their charm in the face of $120/barrel oil and $4 a gallon gas.

The lesson for urban homebuilders (and even those who have developments in very centric, amenity-rich areas that also have the added bonus of an efficient and easy-to-use public transportation system) is to really educate consumers as to the true advantages of thinking smaller when they consider an urban home.

Wise marketers may still have to play part of the incentive or promotion game that plagues the industry now, but a smarter strategy is to stress the intangible advantages of the location of their development. Instead of gas cards to encourage sales center visits, reward potential buyers with gift certificates to local restaurants, coffee bars and cultural attractions — anything to keep them in the area and get them to see the benefits of “staying local.”